BRITAIN’S BAE Systems has put part of its US commercial aviation business up for sale in a move that would build funds of $2billion (£1.3billion).

The company, led by chief executive Ian King, looks set to use the funds for acquisitions as the industry braces itself for a shakeout in the face of state budget cuts across the world.

It has hired JP Morgan Chase and Wells Fargo to advise on the sale as it seeks a bid for its North American “platform solutions” business, including jet engine parts. Other defence groups and private equity firms are also thought to be interested.